For the most recent year, Seether, Inc., had sales of $445,000, cost of goods so
ID: 2741080 • Letter: F
Question
For the most recent year, Seether, Inc., had sales of $445,000, cost of goods sold of $218,600, depreciation expense of $58,300, and additions to retained earnings of $50,500. The firm currently has 30,000 shares of common stock outstanding, and the previous year’s dividends per share were $1.25. The income tax rate is 34 percent.
What was the EBIT? (Do not round intermediate calculations.)
EBIT
How much in total dividends did the company pay? (Do not round intermediate calculations.)
Total dividends
What was the company's net income? (Do not round intermediate calculations.)
Net income
What was the company's earnings before tax (EBT)? (Do not round intermediate calculations. Round your answer to the nearest whole number(e.g., 32).)
EBT
What was the company's interest payment? (Do not round intermediate calculations. Round your answer to the nearest whole number(e.g., 32).)
Interest
What was the company's times interest earned ratio? (Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Times interest earned
Required:What was the EBIT? (Do not round intermediate calculations.)
Explanation / Answer
solution:
Solution 4 EBT and EBIT are same because there is no interest expense
Thank you.
Solution Particulars Amount Sales 445000 COGS 218600 Gross profit 226400 Depreciation expense 58300 Solution 1 EBIT(gross - depreciation) 168100 Tax 34% 57154 solution 3 Net profit 110946 Solution 2 Dividend paid = ( retained - profit) 60446 Retianed earnings 50500